The re-sale value of a leasehold property in Chalfont St Peter is impacted by how many years the lease has left to run. If it is close to or less than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension prior to buying. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that formalities can be finalised well before the 80 year mark. Leasehold Reform legislation entitles Chalfont St Peter qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Chalfont St Peter leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Liam, came precariously close to the 80-year mark with the lease on his purpose- built flat in Chalfont St Peter. In buying his property 19 years previously, the length of the lease was of little interest. Luckily, he noticed he would imminently be paying an escalated premium for a lease extension. Liam was able to extend his lease at the eleventh hour in August. Liam and the freeholder in the end settled on sum of £6,000 . If the lease had slid below eighty years, the price would have increased by at least £1,125.
Mr and Mrs. L Cox was assigned a lease of a studio flat in Chalfont St Peter in November 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Identical premises in Chalfont St Peter with an extended lease were worth £275,000. The mid-range ground rent payable was £65 collected quarterly. The lease ended on 16 April 2094. Considering the 68 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus expenses.
An example of a Lease Extension case for a Chalfont St Peter residence is Flats 8, 11 and 15 Craigmore Court 46 Murray Road in December 2013. The tribunal held that the price payable by the Applicant tenant of Flat 8 to acquire an extended lease shall be £26,438 plus £1 to the intermediate lessee . The tribunal held that the price payable by the Applicant tenants of Flat 11 to acquire an extended lease shall be £26,791 plus £1 to the intermediate lessee. The tribunal held that the price payable by the Applicant tenant of Flat 15 to acquire an extended lease shall be £26,638 plus £1 to the intermediate lessee . This case was in relation to 3 flats. The unexpired residue of the current lease was 71 years.